̶ REIT capitalizes on the
changing retail landscape by acquiring second property formerly
tenanted by Sears Canada ̶
FREDERICTON, Jan. 11, 2018 /CNW/ - Plaza Retail REIT (TSX:
PLZ.UN) ("Plaza" or the "REIT") today announced that it has
acquired a prime retail property in Brockville, Ontario for $14.0 million. The 1000 Islands Mall property,
previously anchored by a Sears Canada store that now sits empty, is
a 281,000 square foot enclosed mall that is ideally positioned for
redevelopment as a strip plaza. Located on Parkedale Avenue
adjacent to Highway 401, the property has long been the retail
focal point of the Brockville
market, easily accessible by area consumers. The REIT intends to
redevelop the property into a multi-unit retail plaza comprising
approximately 155,000 square feet of gross leasable area. The
property will also have excess density that can accommodate future
expansion.
"The acquisition of this property comes on the heels of last
month's acquisition of a Québec property that was also previously
leased to Sears," said Michael
Zakuta, President and CEO of the REIT. "Plaza is recognized
for our core strengths in development and redevelopment. This
property represents another new opportunity for Plaza to leverage
this proven expertise to capitalize on the changing retail
landscape in Canada."
The REIT has satisfied the purchase price through $4.9 million in cash and a new $9.1 million borrowing facility at a cost of
prime plus 1.25%. Development/construction expenses will be
financed through the expansion of this facility. Consistent with
Plaza's established redevelopment strategy, the REIT has initiated
discussions with multiple potential tenants for the site.
About Plaza
Plaza is an open-ended real estate
investment trust and is a leading retail property owner and
developer, particularly in Eastern Canada. Plaza's portfolio
at September 30, 2017 includes
interests in 295 properties totaling approximately 7.7 million
square feet across Canada and
additional lands held for development. Plaza's properties
include a mix of strip plazas, stand-alone small box retail outlets
and enclosed shopping centres, anchored by approximately 90%
national tenants. For more information, please
visit www.plaza.ca.
Forward-looking Information
This press release
contains forward-looking statements, which can generally be
identified by terms such as "intends", "will", "expects" or other
similar expressions or phrases that do not relate to historical
facts. Forward looking statements in this press release
include those which relate to Plaza's intention to redevelop the
property as described, availability of excess density for
accommodation of future expansion and the manner in which
development/construction expenses will be financed.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Plaza to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements contained in this press
release, including but not limited to those described in Plaza's
Annual Information Form for the year ended December 31, 2016 and Management's Discussion and
Analysis for the period ended September 30,
2017, which can both be obtained on SEDAR at
www.sedar.com. Forward-looking statements are based
on a number of expectations and assumptions, including management's
perceptions of historical trends and current conditions and
completion of the redevelopment as described. Although the
forward-looking statements contained in this press release are
based upon information currently available to management and what
management believes are reasonable expectations and assumptions,
there can be no assurances that forward-looking statements will
prove to be accurate. Therefore, readers should not place undue
reliance on forward-looking statements. All forward-looking
statements speak only as of the date of this press release and
Plaza undertakes no obligation to update such statements, except as
required by law. These cautionary statements qualify all
forward-looking statements contained in this press release.
SOURCE Plaza Retail REIT